Renewable Energy Systems applied in April to vary a planning condition relating to noise for its wind farm site at Den Brook, between Spreyton and North Tawton.
The plans for nine 120-metre turbines at the site were originally submitted in 2005 by RES. The Den Brook Judicial Review Group and local residents expressed concerns that such a scheme would create noise pollution.
The existing noise condition was originally imposed on the development as part of the planning permission approval by the court of appeal, and applies to a particular type of noise called amplitude modulation (AM), colloquially known as 'blade swoosh'.
The borough council appointed ISVR Consulting, University of Southampton, to advise it on the condition following RES' application to vary the condition.
In a statement, a spokesperson for the borough council said: 'Based on the findings from Southampton University, the council's environmental health team was unable to support RES' application.
'RES has now withdrawn their application to amend the condition. The council will now be involved in a working group of noise experts, including RES, to agree a method for measuring Amplitude Modulation in order to protect communities in the area.
'Although these discussions are due to begin soon, the withdrawal of the application does not mean that RES is unable to build the turbines. RES has addressed all conditions which are required to start building on the site.'
Rachel Ruffle, RES' development director said: 'We are very pleased that the report by the University of Southampton has confirmed everything we have said regarding Condition 20.
'On the basis of its findings, we have agreed to withdraw our request to vary Condition 20, and we will now work with ISVR to develop a scheme to overcome the problems inherent in the noise condition.
'We have also approached the Den Brook Judicial Review Group and invited them to participate in developing the scheme that will offer residents a robust means of measuring AM without imposing unnecessary restrictions on the operation of the wind farm.'